BILL NUMBER: AB 704	CHAPTERED  09/07/99

	CHAPTER   334
	FILED WITH SECRETARY OF STATE   SEPTEMBER 7, 1999
	APPROVED BY GOVERNOR   SEPTEMBER 7, 1999
	PASSED THE ASSEMBLY   AUGUST 19, 1999
	PASSED THE SENATE   AUGUST 16, 1999
	AMENDED IN SENATE   JULY 6, 1999
	AMENDED IN SENATE   JUNE 14, 1999
	AMENDED IN ASSEMBLY   MAY 24, 1999
	AMENDED IN ASSEMBLY   MAY 10, 1999

INTRODUCED BY   Assembly Member Honda

                        FEBRUARY 24, 1999

   An act to amend Sections 441 and 463 of the Revenue and Taxation
Code, relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 704, Honda.  Ad valorem taxation:  taxpayer reporting.
   The California Constitution authorizes the Legislature to provide
for taxation of tangible personal property and to exempt or classify
personal property for differential taxation.  Statutory law requires
each person owning taxable personal property with an aggregate cost
of $100,000 or more to file a signed property statement with the
county assessor.  The statement must be filed each year between the
lien date and 5 p.m. on the last Friday in May, or between the lien
date and any earlier time chosen by the assessor.
   This bill would instead provide that the statement must be filed
annually between the lien date and 5 p.m. on April 1.  This bill
would provide a penalty for statements not filed by May 7 which
deadline would be extended when weekends, holidays, or office
closures occur.  Because this change in the filing deadline would
require administrative changes by county assessors, it would impose a
state-mandated local program.
   This bill would permit a property statement to be amended and
would require certain information to be provided by the assessor,
thereby also imposing a state-mandated local program.
   The bill would make related changes.
  The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 441 of the Revenue and Taxation Code is amended
to read:
   441.  (a) Each person owning taxable personal property, other than
a mobilehome subject to Part 13 (commencing with Section 5800),
having an aggregate cost of one hundred thousand dollars ($100,000)
or more for any assessment year shall file a signed property
statement with the assessor.  Every person owning personal property
that does not require the filing of a property statement or real
property shall, upon request of the assessor, file a signed property
statement.  Failure of the assessor to request or secure the property
statement does not render any assessment invalid.
   (b) The property statement shall be declared to be true under the
penalty of perjury and filed annually with the assessor between the
lien date and 5 p.m. on April 1.  The penalty provided by Section 463
applies for property statements not filed by May 7.  If May 7 falls
on a Saturday, Sunday, or legal holiday, a property statement that is
mailed and postmarked on the next business day shall be deemed to
have been filed between the lien date and 5 p.m. on May 7.  If, on
the dates specified in this subdivision, the county's offices are
closed for the entire day, that day is considered a legal holiday for
purposes of this section.
   (c) The property statement may be filed with the assessor through
the United States mail, properly addressed with postage prepaid.  For
purposes of determining the date upon which the property statement
is deemed filed with the assessor, the date of postmark as affixed by
the United States Postal Service, or the date certified by a bona
fide private courier service on the envelope containing the
application, shall control.  This subdivision shall be applicable to
every taxing agency, including, but not limited to, a chartered city
and county, or chartered city.
   (d) At any time, as required by the assessor for assessment
purposes, every person shall make available for examination
information or records regarding his or her property or any other
personal property located on premises he or she owns or controls.  In
this connection details of property acquisition transactions,
construction and development costs, rental income, and other data
relevant to the determination of an estimate of value are to be
considered as information essential to the proper discharge of the
assessor's duties.
   (e) In the case of a corporate owner of property, the property
statement shall be signed either by an officer of the corporation or
an employee or agent who has been designated in writing by the board
of directors to sign the statements on behalf of the corporation.
   (f) In the case of property owned by a bank or other financial
institution and leased to an entity other than a bank or other
financial institution, the property statement shall be submitted by
the owner bank or other financial institution.
   (g) The assessor may refuse to accept any property statement he or
she determines to be in error.
   (h) If a taxpayer fails to provide information to the assessor
pursuant to subdivision (d) and introduces any requested materials or
information at any assessment appeals board hearing, the assessor
may request and shall be granted a continuance for a reasonable
period of time.  The continuance shall extend the two-year period
specified in subdivision (c) of Section 1604 for a period of time
equal to the period of the continuance.
   (i) Notwithstanding any other provision of law, every person
required to file a property statement pursuant to this section shall
be permitted to amend that property statement until May 31 of the
year in which the property statement is due, for errors and omissions
not the result of willful intent to erroneously report.  The penalty
authorized by Section 463 shall not apply to an amended statement
received prior to May 31, provided the original statement is not
subject to penalty pursuant to subdivision (b).  The amended property
statement shall otherwise conform to the requirements of a property
statement as provided in this article.
   (j) This subdivision shall apply to the oil, gas, and mineral
extraction industry only.  Any information that is necessary to file
a true, correct, and complete statement shall be made available by
the assessor, upon request, to the taxpayer by mail or at the office
of the assessor by February 28.  For each business day beyond
February 28 that the information is unavailable, the filing deadline
in subdivision (b) shall be extended in that county by one business
day, for those statements affected by the delay.  In no case shall
the filing deadline be extended beyond June 1 or the first business
day thereafter.
  SEC. 2.  Section 463 of the Revenue and Taxation Code is amended to
read:
   463.  If any person who is required by law or is requested by the
assessor to make an annual property statement fails to file an annual
property statement within the time limit specified by Section 441 or
make and subscribe the affidavit respecting his or her name and
place of residence, a penalty of 10 percent of the assessed value of
the unreported taxable tangible property of that person placed on the
current roll shall be added to the assessment made on the current
roll.
   Notice of any penalty added to the secured roll pursuant to this
section shall be mailed by the assessor to the assessee at his or her
address as contained in the official records of the county assessor.

   If the assessee establishes to the satisfaction of the county
board of equalization or the assessment appeals board that the
failure to file the property statement within the time required by
Section 441 was due to reasonable cause and not due to willful
neglect, it may order the penalty abated, provided the assessee has
filed with the county board written application for abatement of the
penalty within the time prescribed by law for the filing of
applications for assessment reductions.
   If the penalty is abated it shall be canceled or refunded in the
same manner as an amount of tax erroneously charged or collected.
  SEC. 3.  No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because
this act provides for offsetting savings to local agencies or school
districts that result in no net costs to the local agencies or school
districts, within the meaning of Section 17556 of the Government
Code.
